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Banks' credit losses and lending dynamics

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Authors and Corporations: Raupach, Peter (Author), Memmel, Christoph (Author)
Other Authors: Memmel, Christoph 1975- [Author]
Type of Resource: E-Book
Language: English
published:
Frankfurt am Main Deutsche Bundesbank [2021]
Series: Deutsche Bundesbank: Discussion paper ; no 2021, 36
Subjects:
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
ISBN: 9783957298447
395729844X
Description
Summary: Using detailed data of all German banks, we find that banks which have suffered heavy credit losses reduce their corporate lending business by 1.32 euro for each euro lost; with 95% confidence, the effect is between 0.85 and 1.80 euros. This sensitivity is in line with (quite heterogeneous) results of earlier studies but significantly lower than those arising from the assumption of constant leverage. Weakly capitalized banks grant fewer new loans than other banks. We control for credit demand using a new method, the construction of tailored hypothetical bank competitors.
Physical Description: 1 Online-Ressource (circa 48 Seiten); Illustrationen
ISBN: 9783957298447
395729844X